2018 (2) TMI 564

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....ER Per: Dr. D.M. Misra Heard both sides. This is an Appeal filed against the Order-in-Appeal No.BVR-EXCUS-000-APP-05-14-15 dated 29.4.2014 passed by the Commissioner (Appeals), Central Excise and Customs, Bhavnagar. 2. Briefly stated the facts of the case are that the Appellant had availed CENVAT credit on Naphtha which is used in their factory for generation of electricity and a part of such e....

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....eir factory for production of excisable product. During the course of generation of electricity in gas generation, plant waste heat/exhaust gas is generated which was earlier vented out but later used by the Appellant in their steam turbine for generation of electricity through steam and the same, in turn, is used in their steam turbine which generates electricity and used within the factory of pr....

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....ELT 641 (SC). 4. Per contra, the ld. A.R. for the Revenue submits that there is no dispute of the fact that Naphtha has been used in generation of waste heat/steam which in turn used in their steam turbine for generation of electricity, also a portion of electricity is wheeled outside the factory, thus, the ld. Commissioner (Appeals) has rightly followed the judgment of the Hon'ble Supreme Court ....

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....red by the judgment of the Hon'ble Supreme Court in the case of Maruti Suzuki Ltd.'s case (supra). Therefore, the Appellants are not eligible to the credit on Naphtha used for generation of electricity wheeled outside the factory as held by the ld. Commissioner (Appeals) in the impugned order. However, I find force in the contention of the ld. Advocate for the Appellant regarding imposition of pen....